Freakonomics
Let's examine the evidence...
We like to think we understand how the world works. But what happens when someone changes the rules of the game?
What happens when you change incentives?
The Power of Incentives
"Parents are arriving late to pick up their children. What do you do?"
In a world where information is power, those who know more hold all the cards. But what happens when the secrets get out?
How is information asymmetry exploited?
CONFIDENTIAL
The internet has eroded the advantage of experts. Secrets are harder to keep.
From the outside, drug dealing looks lucrative. But peek behind the curtain, and you'll find a very different story.
Why do drug dealers live with their moms?
THE CLIMB
Why Drug Dealers Live with Their Moms
It's not a criminal enterprise. It's a tournament.
Most drug dealers earn less than minimum wage. They can't afford rent.
"They stay for the lottery ticket—the tiny chance of making it to the top."
We fear the dramatic, the visceral, the spectacular. But the real danger is often hiding in plain sight.
What should you really fear?
GUN
POOL
What Should You Fear?
So what do all these cases tell us? They reveal a pattern.
Correlation vs. Causation
Conventional wisdom sees a pattern. Data reveals the timeline.
Crime Drop
In the 1990s, crime rates in the U.S. suddenly plummeted. Violent crime fell by 40%. Everyone was shocked.
Experts claimed: Better policing, stronger economy, stricter gun laws.
The real cause: Roe v. Wade (1973) legalized abortion 20 years earlier.
Real Estate Agents
They work for your best interest.
They keep houses on market longer for their own.
Conventional wisdom is usually wrong.
ONOMICS
This is just the beginning. The full book explores dozens more hidden connections between incentives, human behavior, and the real world.
The Data Trail Continues...
SuperFreakonomics
The sequel dives deeper: Global cooling, patriotic prostitutes, and why suicide bombers should buy life insurance.
Thinking, Fast and Slow
Understand the cognitive biases that create conventional wisdom in the first place.
Nudge
How to design better incentives and choice architecture to improve decisions.